Leading tyre manufacturing company Apollo Tyres board of directors has approved for the acquisition of one of Germany's largest tyre distributor, Reifencom GmbH, for an amount of 45.6 million Euro (nearly 324 crores).

"The board of directors of the company at its meeting held on November 16, 2015 has approved for the acquisition of Reifencom GmbH through a wholly owned subsidiary of the company", Apollo Tyres informed in a filing to the Bombay Stock Exchange.

The consideration for this acquisition deal will be paid in cash and this deal is expected to be completed in a period of next one to three months subject to all regulatory approvals.

This acquisition deal by Apollo Tyres is strategically aligned with its expansion policy.

Commenting on the development, Apollo Tyres, Vice Chairman and Managing Director, Neeraj Kanwar said, "The acquisition is a strategic fit in further growing our European business. It will enable Apollo to improve its mix of distribution channels in Germany and Europe and aid in increasing the visibility of Apollo and Vredestein tyres in the offline and especially the fast growing online retail space."

Meanwhile, the shares of the company were trading at Rs 159.25 apiece, up 2.68 per cent from the previous close at 14:42 hours on BSE.